Which of the following best represents operating income?
A)Income after investment activities
B)Earnings before interest and taxes
C)income from discontinued operations
D)Income from capital gains

Question

Quizplus · Accepted Answer

Operating income refers to the earnings of a company before taking into account interest and taxes. This is also known as Earnings Before Interest and Taxes (EBIT). Therefore, option B is the correct representation of operating income.

A) Income after investment activities includes gains or losses from investments and is not related to operating income. 
C) Income from discontinued operations represents the earnings or losses from a business unit that has been discontinued and is not part of regular operations. 
D) Income from capital gains is the profit made from selling capital assets, such as property or stocks, and is not related to the regular operations of a company.

Which of the Following Best Represents Operating Income